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Investment banker and Coca-Cola board member Herbert Allen has bought $18m (â¬14.1m) worth of shares in the soft drink manufacturer, according to a filing with the Securities and Exchange Commission.

Allen, who has been a Coke director since 1982, picked up nearly 444,000 shares priced around $42 in the company this week.

Allen now holds 8.8 million shares in the company directly or through his business entities, including Allen & Co, the investment bank that specializes in media and technology. In 2004, the company participated in the initial public offering of Google.

Buffett, who is also a significant shareholder in a number of US companies including Dairy Queen, Procter & Gamble, Wal-Mart and The Washington Post, announced earlier this year that he is stepping down from the Coca-Cola board.

Last month Coke unveiled plans for a new policy for its board members that ties compensation to the company's profit performance.

Buffett confirmed in his annual letter to Berkshire shareholders today that he is looking for new acquisitions to put the company's reported $40bn cash reserves into action.

The Wall Street Journal reported today that Buffett may announce a major new acquisition at Berkshire Hathaway's annual meeting in Omaha, Nebraska, this weekend.